Company Cars and Vans

Company car benefit is calculated applying the appropriate percentage (based on the car’s CO2 emissions – see table below) to the car’s UK list price.

Company car fuel benefit is charged unless the cost of all fuel for private use is borne by the employee. The taxable benefit is calculated by applying the appropriate % to the car fuel benefit charge multiplier (£23,400).

Where VAT is to be reclaimed on fuel for private use, the employer also has to account for output tax based on a flat rate charge derived from the vehicle’s CO2 emissions.

Company van benefit is generally not related to CO2 emissions but is a set figure of £3,350 with an extra £633 where fuel for private use is provided. Van benefit charge for zero emissions vans £1,340.

Employees using their own cars for business:
Approved mileage allowance payments are 45p per mile for the first 10,000 miles in the tax year and 25p thereafter. Income tax and NICs may be due on higher rates and tax relief may be avaliable on lower rates.

CO 2
in g/km

Apropriate %
Petrol

Apropriate%
Diesel

CO2
in g/km

Apropriate %Petrol

Apropriate %Diesel

0-50

13

17

135-139

28

32

51-75

16

20

140-144

29

33

76-94

19

23

145-149

30

34

95-99

20

24

150-154

31

35

100-104

21

25

155-159

32

36

105-109

22

26

160-164

33

37

110-114

23

27

165-169

34

37

115-119

24

28

170-174

35

37

120-124

25

29

175-179

36

37

125-129

26

30

180
and bove

37

37

130-134

27

31

Diesel cars that are registered on or after 1st September 2017 and meet the Euro 6d emissions standard are exempt from the 4% supplement.